It’s not the product you sell
This is a word of advice that is somewhat little known. It’s not the product you sell. It’s how it’s marketed.
As you are aware, some ‘crappy’ products with little purpose in life other than to make the trademark owner rich sell like hotcakes once in a while tend to boom in sales. On the flip side, real products, things that you could actually use such as a TSA Approved Lock that the TSA can open, but the Bell Hop can’t. That’s an innovative product. It reduces the hassle of having your baggage ripped open.
Then there is the money wasted on fad products, stuff that just doesn’t make sense. You know, the Beanie Babies of the world. The products that seem to consume a much larger portion of a family budget.
In the 1970’s people used to fork over real cash for a pet rock. These products outsell real products at a rate estimated to 12:1 of disposable income as based on a recent ad agency executive study.
This means that for every disposable dollar spent on a real items such as the luggage lock produced by Safe Skies, there are 12 dollars spent on pet rocks, cabbage patch dolls and Crocs slippers
Enjoy this, it outlays how we marketing firms control your pockets.
How do we do it? It varies from industry to industry, but overall it’s pretty much the same way.
In the 1980’s cabbage patch dolls had a great approach, they did heavy promotion, and refused to sell more than a handful of the dolls to stores. This gave the impression that the dolls were ALWAYS SOLD OUT.
It was perfect, it generated demand, it generated buzz, and eventually it generated profit. One day back in the 1980’s the cabbage patch dolls were no longer sold out. Because the manufacturer dumped the millions of them on the market at virtually the same time.
What were people’s response? Buy 10 of them at a time, because they are ‘worth money’ because they were always sold out. The truth, they were never sold out, they were being withheld to artificially inflate the price… and the demand.
In what market on earth would people buy 10 dolls that have factories pushing them out at incredible rates because there appeared to be a shortage? It’s a market that a marketing agency created to suck money out of your wallet.
What happened to the people that bought all those dolls? They got caught holding the bag.
Now they of course said ‘this is our 1984 models’ and this is our ‘1985 models’ to keep the propaganda going, but overall they sold huge figures more than they otherwise would of without a strategy like that.
Real products have this problem, it’s called being real.
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